accessible development finance

Accessible Development Finance

Are you an aspiring entrepreneur?

Do you have a business idea? Does your

business need financial assistance to operate

or to take it to the next level? Do you need

working capital to fulfill a recently obtained

contract/ order to deliver goods or services?

Regardless of your context, wehave

a financial solution for your unique

business needs.

At the Small Enterprise Finance Agency (sefa)

we understand that access to finance is one of

the main factors that hinder thedevelopment

and sustainability of Small, Micro and Medium-sized

Enterprises (SMMEs) and Co-operatives and their

ability to contribute to the economy by creating

the much needed job opportunities. We therefore

seek:

“To be the leading catalyst in the

development of sustainable SMMEs and

Co-operatives by making finance easily

accessible.”

We do this by providing financial assistance

to SMMEs and Co-operatives across various

industry sectors such as:

• services (including retail, wholesaleand tourism);

• manufacturing (including agro-processing);

• agriculture (especially land reform beneficiaries, and

contract-farming activities);

• construction (small construction contractors);

• mining (specifically small-scale miners; and

• green industries (renewable energy, waste and recycling management).

Get up to R15 million of

start-up, expansionary

or acquisition finance

for your business.

sefa Finance Solutions01

What products does sefa offer to SMMEs and Co-operatives?

Our products are

for businesses

requiring financial

assistance ranging

between R50 000

and R15 million.

R15mil

LN Manufacturing: sefa FundedClient

Asset Finance

sefa offers Asset Finance solutions tailored for your

business’ needs. We help you to finance a wide

range of new and/or used moveable assets.

The proceeds of Asset Finance are used to

acquire business moveable assets (machinery

and equipment). Assets purchased through this

funding method must be identifiable by ameans

of serial numbers.

Benefits

• Asset finance allows you to acquire or lease

without impacting your bank balance;

• Assets acquired through Asset Finance canbe

used by sefa as security for theloan.

Repayment Duration

The loan duration is up to a maximum of 60months

or for the economic life of the asset (whichever

comes first).

You can choose from the following funding

solutions that have been designed to meet

different needs of small businesses:

Bridging Loan

This is a short term loan that is provided to an

enterprise to finance its working capital such as

stock and/or operating overheads. This credit

facility is designed for business to business

transactions and is usually suitable for businesses

that have secured firm contracts (purchase orders)

with other businesses (that is, businesses that offer

services and or products to otherbusinesses).

Benefits

A Bridging Loan allows your business tomeet

short term financial obligations by providing

immediate cash flow.

Repayment Duration

The repayment duration of a bridging loan is linked

to the specific term of a contract up to 12months.


Sinmon Trading: sefa FundedClient


Revolving Loan

This is a line of credit whereby the borrower is

allowed to use the funds when they areneeded.

It is usually used for clients who have contracts

with a predetermined lifespan and monetary

value. Revolving credit facilities are mainly used for

operating purposes and the loan amount varyfrom

month to month depending on the client’s current

cash flow needs.

This advance is primarily available to established

businesses who are mainly existing sefa clientswith

satisfactory credit records.

Benefits

Repayments are structured in relation to the

business’ cash flow projections.

Repayment Duration

The revolving loan repayment term is a maximum

of 12 months (or dependent on the duration of

the contract).

Term Loan

Term loans offer businesses the cash they need to

purchase other forms of moveable assets. Unlike

asset financing, term loans are used to acquire

moveable assets that cannot be identified bymeans

of serial numbers (e.g. office furniture, fixtures and

fittings, etc).

Benefits

Often you can use the cash from a term

loan to:

• purchase fixed assets such as equipmentused

in its production process;

• use assets acquired through Term Loan finance as

security for the loan.

Repayment Duration

The term loan repayment period is between 12and

60 months.

What documentation do you need to apply?The checklist below will help you to gather all the

necessary documentation you will need to speed

up your loan application.

TERM LOANS AND ASSET FINANCE

• Business plan

• Cash flow projections

• Lease agreement (if applicable)

• Franchise agreement (if applicable)

BRIDGING LOAN APPLICATIONS

• Project plan and projections

• Copy of contract or order

• Completion certificate for previous work done

(for construction projects only)

• NHBRC and CIDB (for construction projects only)

• Bills of quantities (for construction projects only)

sefa Finance Solutions 11

ASSET FINANCE AND TERM LOANS

• Application form

• Surety form (where applicable)

• Certified copy of ID and that of Spouse (if married In Community

of Property [ICOP])

• Marriage certificate (where applicable)

• ShortCV of themembers/directors/ shareholders/ trustees,etc

• Proof of residence– utilitybill / swornaffidavit (not older than 3 months)

• Valid Tax Clearance Certificate

• Company registration documents e.g. CK2, company profile

• Proof of CIPC/CIPRO annualfees

• Six months latest bank statement (personal and business)

• Loan breakdown

• Supportingquotations (with contact personand bankingdetails of supplier)

• Personal Income and Expenditure Schedule and Assets &

Liability Statement

• Proof of own contribution and source (if applicable)

• Member’s resolution to apply (if applicable)

• If a judgment, notice, default is issued against the applicant,

a letter or document to prove that arrangements aremade

to settle the account or proof that the account is settled must

be provided

• Historic financial statements (not less than 3 years – if applicable)

• Up to date management accounts (if applicable)

• Debtors age analysis (if applicable)

• Creditors age analysis (if applicable)

What do you need to apply?

TO APPLY YOU MUST:

• be a South African citizen or a permanentresident;

• be registered entity with a fixed physicaladdress;

• be within the required contractualcapacity;

• be registered within South Africa;

• be compliant with generally accepted corporategovernance

practices appropriate to the client’s legalstatus;

• have a written proposal or business plan that meets the

requirements of sefa’s loan application criteria;

• demonstrate the character and ability to repay theloan;

• have provided personal and/or credit references (if available);

• be the majority shareholder and the owner manager of the

business;

• where available, provide relevant securities/collateral; and

• have a valid Tax ClearanceCertificate.

THE FOLLOWING BUSINESSES FALL

OUTSIDE THE SCOPE OF ENTERPRISES

THAT WE FUND:

• manufacturing and selling of ammunition;

• tobacco, alcoholic beverages, gambling and sex trade;

• non-profit organisations;

• political organisations;

• persons under debt review;

• un-rehabilitated insolvent shareholders and/or directors

of applying entities;

• primary agriculture (except cash crops and the applicant

must have an off take agreement); and

• property development.

Why sefa?

The business needs of SMMEs come first and we are committed to

providing them with the best service and expertise. We emphasize

the importance of responsiveness, innovation and creativity which

helps us to develop products and services that will exceed the small

businessowner’s expectations and contribute to the sustainabilityof

their businesses and jobcreation.

sefa exists to address challenges faced by SMMEs especially

“access to finance”. We primarily target sustainable SMMEs

and Co-operatives that are unable to attract commercial

credit due to, amongst others, the following:

• Credit Bureau Listing: We do not disqualify a business

owner who is on credit bureau, however, we need proof

that you have madearrangements to repay your debt;

• Initial Cashflow Constraints: We grant a capitalholiday

where applicable;

• Lack of Collateral (Security): We register any securities if

the client has assets they can offer assecurity.


Frequently asked questions

We have proactively answered popular questions

that business owners ask below. If your question is

not included, feel free to contact us through anyof

our client liaising points.

How long will I wait before my application is

approved and the funds are transferred to my

account?

Bridging loans and revolving credit facility are quicker to

process and do not require a business plan but a valid contract.

Term facilities take longer than bridging loans andrequire

a comprehensive business plan to be submitted.

To speed up the turnaround times, you must ensurethat

ALL supporting documentation as per the application

checklist are submitted.

If I’m blacklisted or under debt review, can sefa

still grant me funding?

Each business finance application is treated on own merit

(you must however demonstrate willingness to redeem

your debt by making arrangements with your creditors,

that is, the institutions and/or individuals youowe.).

At what phase of my business can I approach sefa?

At start-up, or growth or decline?

Your business can be at any phase; from start-up to

expansion phase. Even if it’s an existing business that

you may want to acquire. As long as you have a viable

business plan for that business, sefa will look into it.

What if I do not have security or collateral?

sefa considers all applications – whetherthere is

collateral or NOT.

Does sefa fund a business that exports or imports

outside the borders of South Africa?

Yes, but the enterprise must be registered andbe

operated in South Africa.

How much interest does sefa charge?

sefa prices for risk BUT does givediscounts

for developmental impact.

Does my spouse need to sign for business?

Yes, if married in community of property(ICOP).

Does sefa give funding to acquire property(buildings)?

If the property in question will be used solely for

business operations, then yes sefa can offerassistance.

Can sefa help me develop a business plan?

In most cases, we refer businesses without formallywritten

business plans to the Small Enterprise Development

Agency (seda). seda is our sister agency that provides

non-financial support to SMMEs. Read more atseda.org.za

Can sefa fund me if I do not have my own contribution?

It works in your favour to have your own contribution.

This helps lower your debt with sefa. Either way, sefa

treats each case uniquely on merit. Risking-taking bythe

entrepreneur, however, is not negotiable. Risk can be

shared through cash contributions, personal sureties

or career sacrifice.


Contact usFor more information regarding the sefa’s financial

offerings or other non-financial assistance, call our

Client Liaison Centre on 012 748 9600 or write to us at

[email protected].

Alternatively, you can visit any of our Regional Of fices near you or log onto www.sefa.org.za.

Head OfficeCenturion

Eco-Fusion 5, Block D, 1004 Teak Close, Witch-Hazel Avenue, Eco Park,

Centurion, 0157

Tel: (012) 748 9600 | E-mail: [email protected]

Gauteng

Braamfontein

No L3-01, Braampark Office, 33 Hoofd Street, Braamfontein, Johannesburg, 2000 Tel: (011) 403 1761 | E-mail: [email protected]

Ekurhuleni

Ekurhuleni Business Facilitation Network,

Corner Voortrekker & Monument Road Kempton Park


Soweto

Shop 368 Maponya Mall, Thusong Centre Chris Hani / Old Potchefstroom Road Tel: (011) 938 4257 | E-mail: [email protected]

Tshwane (seda co-location)Block C, 4th Floor, Old Mutual Building, 536 Frances Baard & Steve Biko Streets

Pretoria Tel: (012) 441 0480 | E-mail: [email protected]

Eastern Cape

East London

Chesswood Office Park, 8 - 10 Winkley Street, 2nd Floor, Berea, 5241


Mthatha

7 Sissons Street, ECDC Building, Fortgale, Mthatha Tel: (047) 504 2200| Email: [email protected]

Port Elizabeth (seda co-location)

No 68 Cape Road, Mill Park, Port Elizabeth, 6000


Free StateBloemfontein

Office 4 & 5, Preller Square, Graaf Reinet Street, Dan Pienaar,

Bloemfontein, 9301


Qwaqwa

Mampoi Road, Phuthaditjhaba, 9866

Tel: (051) 436 0150) | email: [email protected]

mailto:[email protected]

http://www.sefa.org.za/











KwaZulu-NatalDurban

21st Floor, Office 2102, Durban EmbassyBuilding,

Anton Lembede Street, Durban, 4001

Tel: (031) 368 3485 | E-mail:[email protected]

Pietermaritzburg

1st Floor ABSA Building

15 Chatterton Road,Pietermaritzburg, 3201

Tel: (033) 328 2560 | E-mail [email protected]

Limpopo

Polokwane

Suite 4, No 43 Biccard Street, Biccard Park, Polokwane, 0699 Tel: (015) 294 0900 | E-mail: [email protected]

Mpumalanga

Nelspruit

Corner Ferreira & Streak Street, 3rd Floor, Suite 301 MAXSA Building, Nelpruit,1200Tel: (013) 755 3923 | E-mail: [email protected]

North WestMahikeng

1B Mikro Plaza, Cnr First and Bessemer Streets Industrial Sites, Mahikeng


Rustenburg

32B Heystek Street, Sunetco Building, Rustenburg, 0299 Tel: (014) 592 6391 | E-mail: [email protected]

Northern CapeKimberley72 Long Street, Business Partners Building, Kimberly, 8301 Tel: (053) 832 2275 | E-mail: [email protected]

Upington

De Drift Plaza, Block 6, Olyvenhoutsdrift Settlement

Louisvale Avenue, Upington, 8800


Western Cape

Cape Town

9th Floor, FNB Building, 2 Long Street, . Cape Town, 8001 Tel: (021) 418 0126 | E-mail: [email protected]

George

Entrance A,1st floor Beacon Place, 124 Meade St, George Tel: (044) 847 4770 | E-mail : [email protected]

Saldanha

Tonyn Street, Saldanha, 7395

Tel : (022) 714 1731 | E-mail : [email protected]

sefa is a subsidiary of the Industrial Development Corporation (IDC) and a development

finance institution which was established in 2012 with a mandate to provide access to finance

to SMMEs and Co-operatives.












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